Shell Petroleum B.V. has reached an agreement to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited as the international energy firm continues to streamline its portfolio and concentrate on strategic investments.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said the proposed transaction would give the domestic gas distribution business an opportunity to expand under new ownership.
Aiboni noted that Shell Nigeria Gas had served industrial and commercial customers in Nigeria for more than 25 years, supported by the expertise and commitment of its workforce.
She expressed confidence that the change in ownership would provide a stronger platform for the business’s next phase of development, adding that Shell would continue to focus on its strategic deepwater and integrated gas operations in Nigeria.
Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers through approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states. The company serves more than 130 connected customers.
The transaction also covers Shell Nigeria Gas Holding B.V., established in 2019, which owns all but one of the shares in Shell Nigeria Gas Limited.
Shell said the proposed sale aligned with its strategy of simplifying its business portfolio and directing investments towards areas where it has competitive advantages.
In Nigeria, the company will retain its focus on deepwater operations and integrated gas businesses, including its interest in Nigeria LNG.
However, the sale does not cover Shell’s upstream gas production, liquefied natural gas (LNG) operations or international gas trading activities.
Vaaris Energy, the proposed buyer, has interests across the oil and gas value chain and an existing operational presence in Nigeria.
The transaction remains subject to the necessary regulatory approvals and conditions. Until it is completed, Shell Nigeria Gas Group will remain part of Shell and continue its normal operations and customer services.
CREDIT: VANGUARD
